Freeport's mill expansion in Indonesia on schedule<\/p>\n
NEW ORLEANS (Reuter): Freeport-McMoRan Copper & Gold Inc said
\nTuesday construction is continuing on schedule on the fourth
\nconcentrator mill expansion and is about 35 percent complete.<\/p>\n
The company said completion is expected during mid-1998 at a
\ncost of about US$960 million, including both working capital and
\n$300 million to construct a coal-fired power plant and related
\nfacilities.<\/p>\n
To finance the expansion, the RTZ-CRA Group will provide up to
\n$750 million for defined costs, of which 40 percent will be
\nfunded directly.<\/p>\n
The remaining 60 percent will be loaned on a nonrecourse
\nbasis, Freeport Copper said.<\/p>\n
Exploration activities at Kucing Liar continue to indicate a
\nprojected 200-250 million metric ton geologic resource of 2.0
\npercent copper equivalent previously announced on the southeast
\nquadrant of the Grasberg intrusive.<\/p>\n
Drilling is being conducted from within the Kucing Liar\/Lembah
\nTembaga drift being driven from the Amole adit.<\/p>\n
Freeport said surface drilling on the northern flank of the
\nGrasberg intrusive has also started to test for Kucing Liar-type
\nmineralization at the 2,500-2,900 meter elevation.<\/p>\n
The company said it believes that both Kucing Liar and heavy
\nsulfide \"skarn-type\" mineralization could surround the Grasberg
\nintrusive at these depths.<\/p>\n
In Block B, geophysical surveying and surface mapping and
\nsampling have identified a potential porphyry copper\/gold target,
\nwhich may represent the source of the mineralizing solutions
\nresponsible for the 3-4 million ounce gold resource previously
\nannounced at the Wabu prospect. Drilling is continuing at Wabu
\nand will shortly start to test the porphyry mineralization.<\/p>\n
It said exploration activities continue on P.T. IRJA Eastern
\nMinerals Corp's (Eastern Mining) Blocks I, II and III areas, with
\nfour rigs actively exploring the Etna Bay prospect in Block I
\nwhere significant surface mineralization has been discovered.<\/p>\n
Surface mineralization has also been found in Eastern Mining's
\nBlock II area where exploratory drilling activities are under
\nway.<\/p>\n
A detailed exploration update is expected to be announced next
\nmonth, Freeport Copper said.<\/p>\n
In the first quarter, Freeport's exploration ventures with
\nRTZ-CRA incurred $13.5 million of exploration costs.<\/p>\n
Freeport said it reported $2.7 million of exploration expense
\nin the first quarter of 1997 for exploration costs incurred in
\nthe Eastern Mining area not reimbursed by RTZ-CRA. About $19.7
\nmillion and $1.0 million remain to be applied toward the RTZ-CRA
\nexploration funding received in 1996 for PT-FI's Block A and
\nBlock B areas, respectively.<\/p>\n
It said PT-FI completed the sale-lease-back of infrastructure
\nassets, realizing $35.9 million cash in the first quarter.<\/p>\n
Atlantic Copper Holding SA Atlantic has begun a $13.0 million
\n\"debottlenecking\" project that is expected to increase current
\nproduction capacity of 270,000 metric tons per year by 20,000
\ntons and improve profitability. Completion is scheduled for mid-
\n1997.<\/p>\n
As part of its previously announced share purchase program,
\nFreeport Copper said it bought 1.7 million common shares during
\nthe first quarter for $52.8 million, about $30 per share. Through
\nApril 21, Freeport has purchased some 14.7 million shares under
\nits purchase program of up to 20 million shares.<\/p>",
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"sponsor": "Okusi Associates",
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